Rowan Companies Breaking Out?

Published on Tuesday, 07 September 2010 07:20 Written by Christopher Lynn

New York, September 7th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $28.40 just above calculated resistance at $28.39 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Rowan Companies, Inc. (NYSE:RDC) provides contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.

Rowan's stock was trading in a well defined range with support at $24.36 and resistance at $28.39, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Rowan's stock is still near the broken resistance level, traders will be focusing on $28.39 to see if the stock holds the breakout without rolling over.